Becoming a C-PACE Lender
Last Best PACE operates an "open market" C-PACE program whereby property owners have the flexibility to select their preferred lender for a C-PACE project on their eligible property. The open market model gives property owners access to a range of private lenders who offer competitive rates and financing terms and conditions. Public funds are not typically available for funding C-PACE projects.
Why participate in Last Best PACE?
- Offers an attractive new lending product to assist new and existing customers to fund needed commercial and industrial property building improvements.
- Potential for a pipeline of quality, investor-ready energy efficiency, renewable energy, and water conservation projects.
- Opportunity to fund retrofit investments that can lower operating costs, raise property value, and improve building services that attract and retain tenants.
- Consistent legal infrastructure, uniform program guidelines and standards, and cooperation with participating communities (The Last Best PACE program acts as the single point of contact).
Frequently Asked Questions
All property owners must provide the written consent of the existing mortgage lender or other real property lienholder of record on the eligible property prior to the closing of the C-PACE financing. The lender consent template that property owners need to complete is available in the Program Guidelines.
Lenders may charge a market interest rate on C-PACE financings, plus applicable fees. The C-PACE lender must disclose this interest rate in its financing proposal made to the property owner.
The C-PACE financing term should not exceed the expected life of the proposed improvements as described in the energy assessment. For projects that include multiple improvements, the weighted average useful life of the new equipment must equal or exceed the term of the C-PACE financing. Depending on the equipment installed, terms can be for 20+ years.
The property owner pays the assessment to their county as part of their property taxes. The County then routes the payment to Last Best PACE which then pays the Lender.
The C-PACE statute establishes that a delinquent C-PACE tax assessment becomes a lien on the property, with the same priority as a special assessment. Upon a default, the local government and the C-PACE lender would certify the amount of the delinquency to the Last Best PACE program, which would then work with the appropriate local government to place the amount of the C-PACE financing delinquency on the next available tax roll for collection pursuant to the existing statutory tax collection procedures.
In compliance with the terms of the C-PACE Financing Agreement, upon full repayment, the Last Best PACE program will file a record of termination for the C-PACE tax assessment with the local government.